An analysis on Vical’s Allovectin-7 technology and potential outcome

An analysis on Vical’s Allovectin-7 technology and potential outcome

(As originally published on Seeking Alpha on Mar 22, 2011).

Vical’s stock price has rallied the last few weeks. At the time of this writing the company has a market cap of roughly $180M and a price per share of $2.50. At the end of 2010, total cash was $60M after raising $37M in Sept 2010 in a stock offering that cut the stock price almost by half. It is worth pointing out that at the time of the offering, Vical had less than $15M cash. According to the recently published annual report, Vical burned $28.2M in 2010 and it expects to burn between $22M and $27M in 2011.

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